Obama, leaders talk fiscal cliff compromise

President Barack Obama and Congressional leaders Friday struck a conciliatory tone and appeared to point the way to compromise as they met face-to-face for the first time in the fiscal cliff negotiations.

But the debate remains over the details, which neither House Speaker John Boehner nor Senate Minority Leader Mitch McConnell got into as they declared themselves open to raising new revenues after their meeting at the White House.

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Leaders meet with Obama

Boehner told reporters he’s willing to deal and sent a message to House Republicans that they must appear that they are willing to consider a compromise.

“To show our seriousness, we’ve put revenue on the table as long as its accompanied by significant spending cuts,” Boehner said. “While we’re going to continue to have revenue on the table, it’s incumbent for my colleagues to show the American people that we’re serious about cutting spending and solving our fiscal dilemma.”

McConnell, who will be negotiating with more Republican senators in the lame duck than he’ll have come January, issued a stronger caveat about forcing spending cuts.

“We’re prepared to put revenue on the table provided that we fix the real problem,” McConnell said, “even though most of my members without exception believe that we’re in the dilemma we’re in not because we tax too little but because we spend too much.”

Increasing tax rates on the wealthy was a cornerstone of Obama’s reelection campaign, and he’s said several times since the election that he remains committed to allowing the Bush tax cuts to expire at year’s end on income greater than $200,000 for individuals and $250,000 for couples. Republicans have resisted, with an argument that’s taken shape around parsing the difference between raising rates and raising revenues.

The meeting included discussion of topic that so far has been absent from the debate: revenue targets. Top lawmakers on Capitol Hill have been hesitant to discuss how much money should be raised from reforming the tax code — a key question that will guide the contours of the upcoming negotiations.

To reach those targets, Boehner wants to “create simple mechanisms, in statute, that would achieve those revenue and spending goals. They would be in place unless or until more thoughtful policies replace them,” an aide to the speaker said.

In essence, Boehner seems to be signaling he wants another legislative trigger to ensure Congress does its job. The last trigger Congress created was the dreaded sequester.

Aides to the president and congressional leaders are expected to work over the next week on a framework. In essence, what is the major ask for both parties? For Democrats, it’s raising tax rates on wealthy families and renewing the breaks for couples earning less than $250,000 by the end of the year. For Republicans, it’s making major changes to entitlement programs.

Obama indicated that he would meet with the leaders again after Thanksgiving, aides said. They should get a sense by that point whether a deal is even remotely possible, based on the work done over the next week and the opening bids put forward by all sides, aides said.

But for the Friday, at least, the signs were positive. Almost as if they were speaking from the same notes, Boehner, McConnell, Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi all pronounced the meeting “constructive” — a word that also appeared in a statement from the White House press secretary released later in the day.

Almost as if they were speaking from the same notes, Boehner, McConnell, Senate Majority Leader Harry Reid and House Minority Leader Nancy Pelosi all pronounced the meeting “constructive” — a word that also appeared in a statement from the White House press secretary released later in the day.

Obama kicked off the Friday meeting with a pledge to finally make the progress that’s been promised for months.

Readers' Comments (71)

Obama is DRIVING us off the fiscal cliff with Federal Spending @ 25% GDP, Trillion Dollar per year borrowing and NO PLAN TO LOWER SPENDING OR BORROWING and NO PLAN TO REPAY THE DEBT. All Obama talked about in his presser was his typical class warfare bunk of "raising taxes on the rich." Well that will do NOTHING to stop a SECOND CREDIT DOWNGRADE THIS SPRING. Hello? US Taxpayers now pay almost ONE HALF TRILLION DOLLARS IN INTEREST ON FEDERAL DEBT PER YEAR (we finance the entire Chinese military with our interest payments) because these IDIOTS in Washington CANNOT CUT SPENDING FOR REAL AND THAT MEANS SHUTTING DOWN WORTHLESS AGENCIES LIKE THE DEPARTMENT OF ENERGY AND EDUCATION and leaving local management of local matters to the States.

What do we need most? A Constitutional Amendment to make all US Senators State Appointed as set forth in the original US constitution. We need a POLITICAL brake for the CONSTANT FEDERAL POWER GRABS.

The republicans in the House of Representatives have to show some guts and simply stop funding worthless agencies. Why even argue?

And if State Department won't approve the Canadian Pipeline? Cut thier salaries and benefits by half and stop funding the entire department responsible for "analyzing" the pipeline (i.e., following Obama's instructions to kill the pipeline). Stop funding Hilary's jet and let her travel Amtrak domestically along with Barack.

The framers of the constitution gave the House the ulitmate power: the power of the purse stings. Does Boehner have the guts to use that power to save the country or is he a spineless wimp??

As a conservative I believe it is time for the Republican Party to give Obama exactly what he wants. The answer simply is beyond those on the Tea Party Right the balance of Republicans should allow Obama to pass any legislations he wants by simply abstaining on the vote. Simply let all the Democrats vote for any nut case economic plans they want. They will vote their 191votes while Republicans will be on record opposing those policies while at the same time not being exposed to being obstructionists. Just think how the media would be forced to report a vote of 191 Yas to about 72 to a hundred nas and the balance of the Republicans obtaining. Once the economy collapses back into a deep recession, in panic the Democrats will beg the Republicans to come to the table and save them.

If anybody doesn't think this is going to happen just look at what the Democrat Nutcases are now proposing. Senator Petty Murray Of Washington has proposed that all the Bush Tax Cuts should expire. She is seeking the position of head of the Senate Budget Committee. Then there is the Senate Leadership of Chuck Schumer, Alan Dixon of Illinois, and Senate Majority Leader Harry Reid have proposed more spending including a new Stimulus program, an increase in Entitlements spending (expansion of Food Stamps, and Medicaid and returning the $716 Million striped from Medicare to fund ObamaCare.)and printing more money to cover their mad out of control program. They are determined to steal the land of our family farmers from their families. The estate tax will put the family farmer out of business. The proposed Estate tax change will increase the taxable inheritance from 35% on five million dollars or more to 45% for inheritances of 3.5 million dollars or more. The poor family farmer, whose income doesn't come near the income of Democrat Politicians, whole wealth is within the value of their land. It has been estimated that a family farmer who paid $2,000,000.00 in estate tax when he inherited their farms from their parents, would have to pay over $15,000,000.00 in the tax dollars that Obama and the Democrats are proposing. That is what is facing the economy. The Democrat tax and spend policy is not only going to lead to recession but it is going to collapse the whole economy worse than the panic of 2008. What the Democrats are proposing is Economic destruction worse than the Great Depression and when the crunch time comes, it will be the Democrats and Obama who will take the fall. Just look at the Dow this last week, down by over 1000 points and when Obama is forced to take austerity measures that will hurt his entitlement base the most he reaction will be make Greece and Europe look mild. It is coming and will be upon us sooner than Obama thinks.

Once the economic crash hits then Republicans should hold tight and make Obama and the Democrats bleed the way the Democrats made Republicans bleed with the Economic Panic of 2008.

As a conservative I believe it is time for the Republican Party to give Obama exactly what he wants. The answer simply is beyond those on the Tea Party Right the balance of Republicans should allow Obama to pass any legislations he wants by simply abstaining on the vote. Simply let all the Democrats vote for any nut case economic plans they want. They will vote their 191votes while Republicans will be on record opposing those policies while at the same time not being exposed to being obstructionists. Just think how the media would be forced to report a vote of 191 Yas to about 72 to a hundred nas and the balance of the Republicans obtaining. Once the economy collapses back into a deep recession, in panic the Democrats will beg the Republicans to come to the table and save them.

If anybody doesn't think this is going to happen just look at what the Democrat Nutcases are now proposing. Senator Petty Murray Of Washington has proposed that all the Bush Tax Cuts should expire. She is seeking the position of head of the Senate Budget Committee. Then there is the Senate Leadership of Chuck Schumer, Alan Dixon of Illinois, and Senate Majority Leader Harry Reid have proposed more spending including a new Stimulus program, an increase in Entitlements spending (expansion of Food Stamps, and Medicaid and returning the $716 Million striped from Medicare to fund ObamaCare.)and printing more money to cover their mad out of control program. They are determined to steal the land of our family farmers from their families. The estate tax will put the family farmer out of business. The proposed Estate tax change will increase the taxable inheritance from 35% on five million dollars or more to 45% for inheritances of 3.5 million dollars or more. The poor family farmer, whose income doesn't come near the income of Democrat Politicians, whole wealth is within the value of their land. It has been estimated that a family farmer who paid $2,000,000.00 in estate tax when he inherited their farms from their parents, would have to pay over $15,000,000.00 in the tax dollars that Obama and the Democrats are proposing. That is what is facing the economy. The Democrat tax and spend policy is not only going to lead to recession but it is going to collapse the whole economy worse than the panic of 2008. What the Democrats are proposing is Economic destruction worse than the Great Depression and when the crunch time comes, it will be the Democrats and Obama who will take the fall. Just look at the Dow this last week, down by over 1000 points and when Obama is forced to take austerity measures that will hurt his entitlement base the most he reaction will be make Greece and Europe look mild. It is coming and will be upon us sooner than Obama thinks.

Once the economic crash hits then Republicans should hold tight and make Obama and the Democrats bleed the way the Democrats made Republicans bleed with the Economic Panic of 2008.

As a conservative I believe it is time for the Republican Party to give Obama exactly what he wants. The answer simply is beyond those on the Tea Party Right the balance of Republicans should allow Obama to pass any legislations he wants by simply abstaining on the vote. Simply let all the Democrats vote for any nut case economic plans they want. They will vote their 191votes while Republicans will be on record opposing those policies while at the same time not being exposed to being obstructionists. Just think how the media would be forced to report a vote of 191 Yas to about 72 to a hundred nas and the balance of the Republicans obtaining. Once the economy collapses back into a deep recession, in panic the Democrats will beg the Republicans to come to the table and save them.

If anybody doesn't think this is going to happen just look at what the Democrat Nutcases are now proposing. Senator Petty Murray Of Washington has proposed that all the Bush Tax Cuts should expire. She is seeking the position of head of the Senate Budget Committee. Then there is the Senate Leadership of Chuck Schumer, Alan Dixon of Illinois, and Senate Majority Leader Harry Reid have proposed more spending including a new Stimulus program, an increase in Entitlements spending (expansion of Food Stamps, and Medicaid and returning the $716 Million striped from Medicare to fund ObamaCare.)and printing more money to cover their mad out of control program. They are determined to steal the land of our family farmers from their families. The estate tax will put the family farmer out of business. The proposed Estate tax change will increase the taxable inheritance from 35% on five million dollars or more to 45% for inheritances of 3.5 million dollars or more. The poor family farmer, whose income doesn't come near the income of Democrat Politicians, whole wealth is within the value of their land. It has been estimated that a family farmer who paid $2,000,000.00 in estate tax when he inherited their farms from their parents, would have to pay over $15,000,000.00 in the tax dollars that Obama and the Democrats are proposing. That is what is facing the economy. The Democrat tax and spend policy is not only going to lead to recession but it is going to collapse the whole economy worse than the panic of 2008. What the Democrats are proposing is Economic destruction worse than the Great Depression and when the crunch time comes, it will be the Democrats and Obama who will take the fall. Just look at the Dow this last week, down by over 1000 points and when Obama is forced to take austerity measures that will hurt his entitlement base the most he reaction will be make Greece and Europe look mild. It is coming and will be upon us sooner than Obama thinks.

Once the economic crash hits then Republicans should hold tight and make Obama and the Democrats bleed the way the Democrats made Republicans bleed with the Economic Panic of 2008.

If you want to know why the GOP was trounced in the election, look no further than the comments before this one. Seriously people, you need to get a mental health evaluation.

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First of all, actual free-thinkers in Massachusetts are almost extinct. This is a state of full of absolute lemmings, which vote STRICTLY on party affiliation....look no further than the openly gay moderate Republican losing to the Democrat wrapped in corruption stench.

Second, I really hope Obama stands up to the uber left of his party and agrees on spending cuts if Repubs meet him on raising revenue d thru limiting deductions or something similar.

If he were to do so, I would support him 100% and forgive much of the first four years. Nothing would please me more.

We shall see,,,little in the past (both in his brief time in the Senate and as Prez) gives me any confidence he is capable of compromise.

Obama is DRIVING us off the fiscal cliff with Federal Spending @ 25% GDP, Trillion Dollar per year borrowing and NO PLAN TO LOWER SPENDING OR BORROWING and NO PLAN TO REPAY THE DEBT

This is the kinda stuff that makes the Tea Party irrelevant. In the same story that is talking abotu compromise on both sides you are screaming that there is no compromise. Obama never said not to cut spending, moron.

"Once the economic crash hits then Republicans should hold tight and make Obama and the Democrats bleed the way the Democrats made Republicans bleed with the Economic Panic of 2008. "

Wow. So the Great Recession that the GOP caused is now just a cute little "panic". But the 4+ years of Democratic attempts to thwart worse damages (which are being imposed by more GOP stupidity) and attempt to recover is bad? The logic that is absent from you folks is astounding.

This is like taking candy from a baby. Look kids, on Fox, and on your sadistic radio personalities, it's normal to just ignore what is right in front of your face and make up your own reality. But if you ever get a job, or have to do anything that questions your credibility, you have to actual tell smoe truths and facts when talking.

What you are doing is being ignorant. You are making stuff up that sounds the way you want to hear it. It's ridiculous.

What you are doing is being ignorant. You are making stuff up that sounds the way you want to hear it. It's ridiculous.

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Your rant leaves you with three of your fingers pointing right back at yourself.

The historical record is a reliable predictor of future behavior. They will kick the can again (but try to call it something else, of course, and f follow it up with a string of platitudes ).

The debt ceiling will be raised again. Count on it. They lack the political courage and will to reform. Those who do have the courage to propose meaningful reform will be castigated and vilified. That has been demonstrated time and time again.

We've seen this play before. One must be willifuly blind to not see it.

Boehner is Paul Ryan's and Eric Cantor's puppet. He will do whatever they want.all

Let the Bush tax cuts expire!! Let the sequestration begin!!

The Party of No will not compromise!!!

Republicans will stand with their pledge to Grover Norquist!!!

More stalemate!!

Good luck with eliminating the filibuster rule in the Senate!!!

>Republican strategist Dan Bartlett smugly said in a recent interview that the tax cuts were a trap for Democrats designed by Bush and the Republicans to detonate on someone else’s watch.> EFFECT OF REAGAN, KENNEDY, AND BUSH TAX CUTS ON REVENUES EFFECT OF REAGAN TAX CUTS ON REVENUES - SHORT ANALYSIS

The argument that the near-doubling of revenues during Reagan's two terms proves the value of tax cuts is an old argument. It's also extremely flawed. At 99.6 percent, revenues did nearly double during the 80s. However, they had likewise doubled during EVERY SINGLE DECADE SINCE THE GREAT DEPRESSION! They went up 502.4% during the 40's, 134.5% during the 50's, 108.5% during the 60's, and 168.2% during the 70's. At 96.2 percent, they nearly doubled in the 90s as well. Hence, claiming that the Reagan tax cuts caused the doubling of revenues is like a rooster claiming credit for the dawn.

Furthermore, the receipts from individual income taxes (the only receipts directly affected by the tax cuts) went up a lower 91.3 percent during the 80's. Meanwhile, receipts from Social Insurance, which are directly affected by the FICA tax rate, went up 140.8 percent. This large increase was largely due to the fact that the FICA tax rate went up 25% from 6.13 to 7.65 percent of payroll. The reference to the doubling of revenues under Reagan commonly refers to TOTAL revenues. These include the above-mentioned Social Insurance revenues for which the tax rate went UP. It seems highly hypocritical to include these revenues (which were likely bolstered by the tax hike) as proof for the effectiveness of a tax cut.

Hence, what evidence there is suggests there to be a correlation between lower taxes and LOWER revenues, not HIGHER revenues as suggested by supply-siders. There may well be valid arguments in favor of tax cuts. But higher tax revenues does not appear to be one of them.

Still, it's important to note that the Kennedy tax cut reduced the top marginal rate from 91% to 70%. Reagan went on to reduce it from 70% to 50% in 1981 and from 50% to 28% in 1986. A marginal rate of 91% seems exceptionally high, at least by today's standards. Hence, it would seem possible that Kennedy's tax cut was beneficial, at least in reducing this oppressive top marginal rate but that Reagan's tax cuts took the marginal rates to a level where the negative effects far outweighed any positive effects.

Hence, although it's been just about eleven years since the 2001 tax cut and nine years since the 2003 tax cut, the evidence to this point is that the Bush tax cuts decreased revenues over what they would have been, at least over the short term. This was true even in my prior analysis based on data through 2007, before the financial crisis of 2008.

I don't know, ...why don't you ask Congress. The President is in the Executive Branch and Congress is in the Legislative Branch (little govt 101 for ya). The GOP won an overwhelming majority in 2010 only to do what....wait for it....NOTHING. Ok, that's not true. They did get a few things accomplished. They voted 33 times and failed to repeal a bill (ACA/Obamacare to prove some ridiculous ideological point that they lost in the end but hey...it was worth wasting all that time because they got so much...oops) that even Mitt Romney indicates is a good bill that needs to be changed...not thrown out wholesale.

Wow! YOu geniuses on the right must be proud...with that record it's a mystery why you got your ***es handed to you last week....lol